SEC settle fraud charges with Charlotte Couple

The Securities and Exchange Commission filed a complaint with the United States District Court for Western District of North Carolina against Sidney Hanson and Charlotte Hanson charging the couple with violating anti fraud and registration provisions in federal securities laws.

The Securities and Exchange Commission alleged that Sidney and Charlotte Hanson fraudulently pledged to investors a return of annual earnings over eight percent and as high as thirty percent of their funds would be save guarded in a diversified portfolio. Sidney and Charlotte according to the Securities and Exchange Commission spent the bulk of the investor funds on extremely uncertain private investments and used a portion of the funds to pay other expenses; monies that were to be placed in the save guarded portfolio.

Sidney and Charlotte recruited investors while at local church events and other gatherings. They persuaded investors to liquidate their retirement funds and invest in loan arrangements that the Hanson’s’ controlled through their companies.

The Securities and Exchange Commission believes that five hundred investors and over thirty two million dollars are involved in the scheme. Sidney and Charlotte have agreed to settle out of court without admitting or denying any wrong doing. The Hanson’s did agree to a permanent injunction and federal penalties. The federal penalties will be determined by the court at a later date. In addition, to those terms the Hanson also agreed to having their assets frozen and completed an order preventing the destruction and concealment of documents.